Climax Portable Machine Tools, Inc. v. Trawema GMBH

District Court, D. Oregon·Decided December 17, 2020·No. 3:18-cv-01825·Unknown

Opinion

UNITED STATES DISTRICT COURT

DISTRICT OF OREGON

PORTLAND DIVISION

CLIMAX PORTABLE MACHINE TOOLS, Case No. 3:18-cv-01825-AC INC., an Oregon corporation, OPINION AND Plaintiff, ORDER

v.

TRAWEMA GMBH, a foreign company, GUNTER CRAMER, an individual, SIMON HECK, an individual, and JOHN DOES 1 through 3, individuals,

Defendants. ___________________________________

ACOSTA, Magistrate Judge: Introduction Defendants Gunter Cramer (“Cramer”) and Simon Heck (“Heck”) (collectively “Defendants”) move to compel (ECF No. 72, hereafter “Defendants’ Motion”) plaintiff Climax Portable Machine Tools, Inc. (“Climax”) to provide complete answers to Defendants’ first set of interrogatories (“Interrogatory” or “Interrogatories”) or, alternatively, amend its responses to PAGE 1 – OPINION AND ORDER Defendants’ requests for admissions (“Admission” or “Admissions”). Based on the representations and allegations contained in Climax’s recent motion to amend the complaint, the court grants Defendants’ Motion to compel complete answers to Interrogatories No. 2 through No. 7 and amendments to Climax’s responses to Admissions No. 9 through No. 14. Background

Climax is an Oregon corporation in the business of designing and manufacturing complex industrial machine equipment. (Am. Compl., ECF No. 10, ¶¶ 1, 4.) Defendants are mechanical engineers and former employees of Climax’s subsidiary, Climax GMBH, a German company engaged in the business of selling and distributing Climax’s products in Europe. (Am. Compl. ¶¶ 1, 5, 7, 8.) After leaving Climax in 2014, Cramer founded Trawema, a German company engaged in the design, manufacture, and sale of portable machining tools, which became a direct competitor of Climax. (Am. Compl. ¶¶ 1, 56.) Trawema hired Heck as a design engineer in May 2016. (Am. Compl. ¶ 8.) Climax alleges Defendants had access to and obtained design documents, drawings, and

plans containing extensive trade secret information for two of Climax’s most successful products, and that Trawema is currently manufacturing and marketing two products that are “nearly exact copies of Climax products.” (Am. Compl. ¶ 1.) Climax specifically alleges: “Trawema could not have produced such nearly identical copies of Climax’s products without using Climax’s own proprietary design documents that the individual Defendants stole, and Trawema knowingly used without authorization.” (Am. Compl. ¶ 2.) Climax asserts claims for violation of the federal Economic Espionage Act and Oregon’s Uniform Trade Secrets Act, and common-law claims of conversion and unjust enrichment, all based on Defendants’ misappropriation of Climax’s confidential information.

PAGE 2 – OPINION AND ORDER On April 23, 2019, Defendants and Trawema filed a motion to dismiss for lack of personal jurisdiction. The court recommended granting the motion in a Findings and Recommendation dated November 13, 2019 (the “F&R”), finding “Defendants’ intentional acts were not expressly aimed at the State of Oregon and did not create the necessary contacts with the State of Oregon to allow this court to exercise personal jurisdiction over Defendants in this lawsuit.” Climax Portable Machine Tools, Inc. v. Trawema GMBH, Case No. 3:18-01825-AC, 2019 WL 8953357, at *1 (D. Or.

Nov. 13, 2019). District Judge Michael H. Simon adopted the F&R with respect to Trawema but denied it with respect to Defendants. (Op. and Order dated March 19, 2020, ECF No. 44 (“Order”).) Judge Simon considered Defendants’ contacts with the State of Oregon under the “purposeful availment” analysis and found Defendants’ knowledge that Climax stored its confidential information on a server located in Oregon, their alleged retrieval of such information from the server for an unauthorized purpose, and their contacts with Climax employees in Oregon for the purpose of requesting confidential files and access to other confidential information were sufficient to establish personal jurisdiction over Defendants. (Order at 7-12.) Judge Simon found an alternative basis for jurisdiction under the “purposeful direction” test, based on Defendants’ intentional access of Climax’s servers and employees in the State of Oregon for the purpose of misappropriating trade secrets, to establish and aid a competitive entity that resulted in harm in the forum state. (Order at 13-14.) Legal Standard The scope of discovery in a case is defined in Federal Rule of Civil Procedure (“Rule”) 26. Rule 26(b)(1) provides:

Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party’s claim or defense and proportional to the needs of the case, considering the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’ resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit. PAGE 3 – OPINION AND ORDER Relevant information need not be admissible evidence to fall within the scope of discovery. Id. The party seeking to compel discovery has the burden of establishing its request is relevant under Rule 26(b)(1). Sarnowski v. Peters, Case No. 2:16-cv-00176-SU, 2017 WL 4467542, at *2 (D. Or. Oct. 6, 2017). The party opposing discovery has the burden of showing that discovery should not be allowed and has the burden of clarifying, explaining, and supporting its objections. Id.; Yufa v. Hach Ultra Analytics, No. 1:09-cv-3022-PA, 2014 WL 11395243, at *1 (D. Or. Mar. 4, 2014) (“If a party elects to oppose a discovery request, the opposing party bears the burden of establishing that the discovery is overly broad, unduly burdensome, or not relevant. Boilerplate, generalized objections are inadequate and tantamount to not making any objection at all.” (citation

and quotation omitted)). If a party objects to a discovery request, it is the burden of the party seeking discovery on a motion to compel to demonstrate why the objection is not justified. Weaving v. City of Hillsboro, No. CV-10-1432-HZ, 2011 WL 1938128, at *1 (D. Or. May 20, 2011). In general, the party seeking to compel discovery must inform the court which discovery requests are the subject of the motion to compel and, for each disputed request, inform the court why the information sought is relevant and why the objections are not meritorious. Id. Discussion I. Identification of Misappropriated Documents A. Interrogatories Defendants seek to compel complete responses to Interrogatories No. 4 through No. 7,

asserting “Climax’s responses are evasive, generalized, and obfuscated by objections.” (Defs.’ Mot. to Compel (“Mot.”), at 3.) Rule 37 controls Defendants’ Motion. A propounding party may “move for an order compelling an answer, designation, production, or inspection” if “a party fails PAGE 4 – OPINION AND ORDER to answer an interrogatory submitted under Rule 33.” FED. R. CIV. P. 37(a)(3)(B)(iii) (2019). Rule 37(a)(4) provides that “an evasive or incomplete disclosure, answer, or response must be treated as a failure to disclose, answer, or respond.” FED. R. CIV. P. 37(a)(4) (2019). Defendants’ Interrogatories No. 4 and No. 5 ask that Cramer: INTERROGATORY NO. 4: Identify each document that You claim Cramer misappropriated from Climax at any time, as alleged in the Complaint.

INTERROGATORY NO. 5: For each document identified in response to Interrogatory No. 4, describe in detail the basis on which You contend that Cramer misappropriated the document.

Free access — add to your briefcase to read the full text and ask questions with AI

Climax Portable Machine Tools, Inc. v. Trawema GMBH, (D. Or. 2020).

Climax Portable Machine Tools, Inc. v. Trawema GMBH (Climax Portable Machine Tools, Inc. v. Trawema GMBH) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related